Using a 401(k) to Achieve Your Other Financial Goals 83 It's important to know your 401(k) loan rules. Your plan may require that a committee review your loan before it is approved. Other plans allow only hardship loans. So, be prepared to document and support the reasons you are taking out the loan, like proving that you have a "hardship" that fits the IRS guidelines. You don't want "Lied on His 401(k) Loan Application" written all over your next review. For tips on taking out loans, check out Chapter 17, "Borrowing from Yourself." And if all these approvals aren't enough, some plans require spousal consent. That's right--your spouse must agree to the loan you're requesting. Get out the candles and good china! Dumb Uses for a 401(k) Now that you have accepted the rules of the game, consider the consequences of borrowing your retirement money for other than honorable purposes. Here's a list of don'ts and the reasons why you shouldn't. Don't use your 401(k) plan for short-term pleasures: · Toys (including a VCR, a CD player, a TV, or a computer) Our Advice